New Regulations on Land Use Fees: Exemptions and Reductions

Land Use Fee Exemptions:

– Housing and Land Policies: Exemptions for disabled veterans or sick soldiers without working capabilities, families of fallen soldiers without primary breadwinners, ethnic minorities, and individuals from poor households living in difficult socio-economic conditions, including border and island areas.

– Life-Threatening Situations: Exemptions for those who need to relocate due to life-threatening circumstances and don’t have the means to compensate for their lost land.

– Social Welfare: Exemptions for social welfare projects, such as building infrastructure for cemeteries and crematoria to serve the burial needs of policy beneficiaries as per the Law on Construction, Management, and Use of Cemeteries and Crematoria.

– Ethnic Minorities and Poor Households: Exemptions for ethnic minorities and poor households who fall within the scope of difficult socio-economic conditions, as defined by the Government, the Prime Minister, and specific minority groups and mountainous areas.

– Individuals with Merits: Exemptions for individuals with merits and their households, in line with the Law on Persons with Merits, for land use within the permitted residential land limit.

– Social Housing: Exemptions for projects constructing social housing, housing for armed forces, and renovating old apartment buildings as per the Law on Housing.

– Other Cases: Ministries, provincial-level People’s Committees, and relevant authorities may propose additional cases to the Ministry of Finance for government regulation, subject to the approval of the National Assembly Standing Committee.

Revoking Exemptions: If an individual or organization is found to have acquired an exemption despite not meeting the necessary conditions, the land management agency, in collaboration with other relevant agencies, shall revoke the exemption. The individual or organization will then be required to pay the land use fee, including late payment charges, as per tax regulations.

Land Use Fee Reductions:

– Ethnic Minorities and Poor Households: 50% reduction for ethnic minorities and poor households outside the areas mentioned above.

– Border and Island Areas: 50% reduction for individuals specified in points a and b, Article 124 of the Land Law, who are working in border and island communes or districts without commune-level administration and facing particularly difficult socio-economic conditions.

– Difficult Socio-Economic Conditions: 30% reduction for individuals specified in points a and b, Article 124 of the Land Law, who are working in border and island communes or districts without commune-level administration and facing difficult socio-economic conditions.

– Individuals with Merits: Reductions for individuals with merits and their households, in accordance with the Law on Persons with Merits, for land use within the permitted residential land limit.

– Cemetery and Crematorium Projects: Reductions as per investment laws and relevant regulations for projects constructing infrastructure for cemeteries and crematoria to serve the burial needs of policy beneficiaries.

These reductions are as follows:

• 50% reduction for projects in areas with particularly difficult socio-economic conditions.
• 30% reduction for projects in areas with difficult socio-economic conditions.
• 20% reduction for projects in other areas.

The list of areas with difficult and particularly difficult socio-economic conditions shall be defined according to investment laws.

Authority for Calculating and Deciding on Reductions: The authority to calculate and decide on land use fee reductions is vested in tax authorities. The Director of the Provincial Tax Department shall determine and issue decisions on land use fee reductions for economic organizations, overseas Vietnamese, and organizations with foreign investment.

The Chief of the District Tax Office or Inter-district Tax Office shall determine and issue decisions on land use fee reductions for households and individuals.

This Decree takes effect from August 1, 2024.

By Nhật Quang